Question 1

Archway Architects, Inc., makes travel arrangements online and stores the confirming documents and receipts on its servers. Under the UETA, "information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form" is

Accepted Answer

The UETA defines "record" as "information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form." Therefore, the documents and receipts stored on Archway Architects, Inc.'s servers are considered records under the UETA.

Question 2

Corporate Code, Inc., sells business software-accounting and book-keeping programs, blank business forms, inventory control functions, and the like-in different combinations, in different packages, at different prices. Each package includes a shrink-wrap agreement that limits warranties and remedies. Developmental Research Corporation (DRC) buys a Corporate Code package and uses the product. Later, DRC files a suit against the software seller, claiming that the product was flawed and that the flaws caused DRC to suffer business losses. DRC asks for relief that exceeds the limits in the shrink-wrap agreement. What is a shrink-wrap agreement? Are such agreements al-ways enforced? Under what circumstances is a court likely to enforce this agree-ment?

Accepted Answer

The answer of Corporate Code, Inc., sells business software-accounting and...

Question 3

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Accepted Answer

By clicking on "I accept" after viewing certain terms, Richie enters into a contract that includes the terms.

Question 4

World Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use

Accepted Answer

The UETA applies to transactions in which the parties agree to use electronic means, such as email or online portals, to conduct the transaction. If the parties agree to use paper documents, the UETA would not apply. The UETA does not require updates and cross-checks to orally verify e-terms, nor does it require notarized documents.

Question 5

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

Accepted Answer

The answer of Megan gives out a business card with...

Question 6

Bret buys a subscription to the catalog of movies provided by Cinematique, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the films. This provision is

Accepted Answer

The provision stating that Bret will not make and sell copies of the films is a click-on agreement as it is presented to her before accessing the catalog and she must click on "agree" to proceed.

Question 7

On December 1, Petroleum, Inc., sent Rachel & Rico (R&R) a letter, via overnight delivery, offering to employ R&R to review Petroleum's tax situation for the current year for $10,000. In the letter, the company stated that R&R had ten days to accept. On December 5, R&R sent an e-mail message that stated, "The price for the tax analysis seems too low. Would you consider paying $15,000?" Petroleum received the message without responding immediately. The next day, Smith & Taylor, an R&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, R&R immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why R&R and Petroleum do, or do not, have a contract.

Accepted Answer

The answer of On December 1, Petroleum, Inc., sent Rachel...

Question 8

Global Dispatch Corporation and Heavy Hauling, Inc., agree in advance to terms that apply to their future e-transactions. This is

Accepted Answer

The answer of Global Dispatch Corporation and Heavy Hauling, Inc.,...

Question 9

Good Grains Farms and Hiway Shipping Company make a deal for Hiway's services, communicating entirely online. Under the UETA, an electronic record of their deal is considered sent when it

Accepted Answer

According to the UETA, an electronic record is considered sent when it leaves the sender's control. This means that as soon as Good Grains Farms sends the electronic record of the deal to Hiway Shipping Company, it is considered sent, even if it has not yet been received or read by the recipient.

Question 10

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include

Accepted Answer

A provision relating to the resolution of any dispute should be included to provide clarity in case of any disagreement between the company and its customers. This will prevent any misunderstandings and reduce the risk of litigation.

Answer: D 
 An updated list of the music available through the service should be provided to ensure that the customers are informed of the content of the service they are subscribing to. This will prevent any misunderstandings and reduce the risk of dissatisfaction and negative reviews.

B and C are not relevant to controlling specific offers and contracts for music-streaming services.

Question 11

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Accepted Answer

By making important terms reasonably clear, Waste Management can ensure that both parties have a clear understanding of the terms of the contract and reduce the likelihood of disputes arising from misunderstandings or disagreements over the contract's meaning. Vaguely ambiguous terms can create confusion and leave room for interpretation, while practical and standardized terms may be more useful in ensuring the contract runs smoothly, but do not necessarily protect against disputes.

Question 12

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember

Accepted Answer

A shrink-wrap agreement is a contract that is included with a product and is only enforceable if the purchaser has an opportunity to read it before the purchase is made. If Ember learns of the shrink-wrap agreement after the contract is formed (i.e. after purchasing the game), it cannot be enforced. Therefore, option B is the correct answer. The other options are irrelevant to the enforceability of the shrink-wrap agreement.

Quiz 11: Agreement